LG DEPANNAGE : revenue, balance sheet and financial ratios

In 2024, LG DEPANNAGE achieves revenue of 2.2 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +25.6%. Vs 2023, growth of +11% (1.9 M€ -> 2.2 M€). After deducting consumption (216 €), gross margin stands at 2.2 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 180 k€, representing 8.4% of revenue. Warning negative scissor effect: despite revenue change (+11%), EBITDA varies by -40%, reducing margin by 7.2 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 31 k€, i.e. 1.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 248%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 22%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.0 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 6.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 266.25. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 12.9x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 72 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 21 days. The gap of 51 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 15 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 68 days of revenue, i.e. 407 k€ to permanently finance. Over 2016-2024, WCR increased by +453%, requiring additional financing.

Based on 147 transactions of similar company sales in 2024, the value of LG DEPANNAGE is estimated at 749 742 € (range 348 312€ - 1 291 871€). With an EBITDA of 180 141€, the sector multiple of 5.5x is applied. The price/revenue ratio is 0.35x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.